Working with a financial planner comes with several benefits that can make your life easier, including reducing stress, helping create a tailored plan, and preserving your legacy. A financial planner can help a range of people reach their investment goals, plan insurance, optimise their tax, and improve their financial health. To help you decide if you need to work with one, we have detailed the five benefits of working with a financial planner below. Let’s dive in to see if a financial planner could benefit you.
1.They help you get the most out of your retirement
Financial planners can help you create retirement goals and a plan that will ensure you meet your goals. The plan will be specific to your goals and situation, ensuring that it is achievable without making too many drastic changes to your current quality of life. A financial planner will consider any roadblocks that could make it challenging to hit your goals and how these can be overcome. They will direct you through any changes and will review your goals and plan regularly, updating them where needed.
A financial planner can also help you manage your assets, ensuring they are being managed effectively. This can involve changing your savings and finances as you switch from saving in certain accounts. They can help you utilise your pension, ISA, and other bonds you might have to ensure you get the most out of your money. Financial planners also help you draw your income at the right time, helping you to stay within specific tax allowances to prevent lost interest or large tax bills.
2.They help reduce admin stress
Admin stress is a huge part of financial planning, so why not offload it onto a financial planner? Managing all of your finances yourself can be overwhelming, especially if you are handling estate management, investment planning, and organising your taxes. Financial planners remove any confusion and stress and handle all of your planning for you. They can help you set goals to achieve your dream finances, manage your current finances, and handle any changes to tax laws, ensuring you are not paying too much or too little tax.
3.They help you preserve a legacy
Preserving a legacy is an essential aspect of finances for many people, and a financial planner can help with this. Inheritance tax can be tricky to understand, and you can easily end up leaving your loved ones with a hefty tax bill to handle. By using a financial planner, you can ensure that your loved ones aren’t left with a huge tax bill and that your legacy is preserved.
Financial planners can help you pass your assets to your family and discuss death and money with them if needed. These can be difficult topics for some families to discuss, but financial planners have plenty of experience handling these delicate topics and can offer support and guidance.
Financial planners can walk you through several options, too, including trust planning and gifting that allow you to provide for your family without incurring hefty tax bills.
4.They create a tailored plan
Financial planners will create a tailored plan for you and your needs instead of providing generic advice that does not align with your situation or goals. A financial planner spends time getting to know you, understanding your finances, and your needs to ensure that the plan they create benefits you. Financial advisors don’t stop there and will continue to review your plan, making adjustments where needed to protect your assets and help you reach your goals.
5.They provide you with experienced advice
A financial advisor offers you experienced advice that can allow you to save money in the long term. With years of experience and a deep understanding of tax laws, they can switch you to tax-efficient products which can save nearly 40% on tax bills! This huge saving can allow you to set more money aside for retirement, invest in new products, or save for rainy days.
Are there any drawbacks to working with a financial planner?
While financial planners come with plenty of benefits, there are a few drawbacks that are worth considering before parting with your money, including the following:
- Financial planners can be expensive, depending on what they charge for their services
- Financial planners might not have your best interests at heart when it comes to where your money is invested
It is worth keeping these drawbacks in mind when looking for a financial planner, and we recommend that you spend time doing thorough research to find a financial planner you can trust with your assets without worrying about a conflict of interest.
Find your financial planner today
Financial planners have many benefits, making them an asset to anyone who chooses to use them. When selecting a financial planner, we recommend the expats at Solace Financial. With years of experience, these planners can help you make the most of your money and prepare for your future. Contact Solace Financial Planning to find your financial planner today.